1. Starbucks:
Strategies to Sustain Competitive Advantage

2. Key Issues
Definition of “industry”
Coffee?
Pursuit of growth:
Control of independent vendors, partners, and
licensees
Suppliers:
Quality, stable supply
Rivals:
Grocery producers, fragmented houses, foreign

3. Outlook
Growth in consumption:
15% per year
per capita rebounding to 2-3 cups/day
Shift in demand for coffee types/channels:
Specialty coffee growing faster than basic
More being sold via specialty stores vs. grocers

4. General Environmental Forces
Social
Political
Technological
Global
Legal
Economic
NET EFFECT?

5. Five Forces
Buyers
Suppliers
Substitutes
New entrants
Rivalry
NET EFFECT?

6. External Analysis
 Opportunities:  Threats:

7. Technological Development
Human Resource Management
Firm Infrastructure
Procurement
Inbound
Logistics
Operations
Outbound
Logistics
Marketing
&
Sales
Service
Value Chain of Firm Activities

8. Internal Analysis
 Strengths:  Weaknesses:

9. Mission and Goals
Mission/vision:
Define industry, values, customers, etc.
Overall strategic approach
Goals:
Financial
Strategic

10. Strategic Recommendations
Do XX
Value chain activity ‘a’
Value chain activity ‘b’
Result: Eliminates vulnerability to SWOT
Do YY
Value chain activity ‘a’
Value chain activity ‘c’
Result: Increases extent of experiential
differentiation, buffers against new rivals